Software as a service (SaaS) is a software licensing and delivery model in which software is centrally hosted, e.g. on a database, and remotely accessed by one or more users. The software is typically accessed through a browser, web-based portal, desktop software, etc., presented on a network-accessible device. This delivery model has allowed companies to reduce information technology (IT) costs and software/hardware maintenance costs.
Because the centrally-hosted software requires an end-user be authenticated, e.g. have a valid username and login, license compliance is generally not a significant concern. Unauthorized end-users simply aren't allowed access to the software.
Historically, organizations and enterprises have struggled to accurately measure software usage. In some instances, a monitoring plugin was installed on the web browser used by the end-user to access the software. But end-users now often connect to the centrally-hosted software using some combination of a desktop, laptop, tablet, cellular telephone, etc. It is impractical, if not impossible, to install and track monitoring plugins installed on each of these devices. Moreover, it is difficult to efficiently and effectively consolidate monitoring reports generated by monitoring plugins installed on a variety of distinct devices.